Substitute House Bill No. 6425
Substitute House Bill No. 6425
PUBLIC ACT NO. 97-277
AN ACT CONCERNING THE TESTING OF RACING DOGS, THE
LICENSING OF LOTTERY CORPORATION EMPLOYEES AND
OFF-TRACK BETTING.
Be it enacted by the Senate and House of
Representatives in General Assembly convened:
Section 1. (NEW) The executive director of the
Division of Special Revenue shall, within
available appropriations, order the collection of
urine specimens from racing dogs following a race
or at any time during a meet conducted by any
licensee authorized to conduct dog racing events
under the pari-mutuel system. The executive
director shall adopt regulations in accordance
with the provisions of chapter 54 of the general
statutes to implement the provisions of this
section.
Sec. 2. Subsection (b) of section 12-577 of
the general statutes is repealed and the following
is substituted in lieu thereof:
(b) (1) The Auditors of Public Accounts shall,
as part of their audit of the accounts and records
of The University of Connecticut, audit the
accounts and records of the microchemistry
laboratory at The University of Connecticut which
is responsible for the testing of urine of racing
dogs. Said auditors shall make a separate report
of their findings relative to the microchemistry
laboratory.
(2) THE EXECUTIVE DIRECTOR OF THE DIVISION OF
SPECIAL REVENUE SHALL TRANSFER URINE SPECIMENS
COLLECTED FROM RACING DOGS PURSUANT TO SECTION 1
OF THIS ACT TO THE MICROCHEMISTRY LABORATORY FOR
THE TESTING OF SUCH URINE SPECIMENS. THE
LABORATORY SHALL CONDUCT SUCH NUMBER OF TESTS ON
SUCH SPECIMENS AS REQUIRED, PROVIDED THE TOTAL
NUMBER OF SUCH TESTS CONDUCTED DOES NOT EXCEED
SIXTEEN THOUSAND IN ANY FISCAL YEAR.
Sec. 3. (NEW) As used in this section,
"procedure" shall have the same meaning as
"procedure", as defined in subdivision (2) of
section 1-120 of the general statutes. The
Division of Special Revenue shall, for the
purposes of sections 3 to 9, inclusive, of this
act, regulate the activities of the Connecticut
Lottery Corporation to assure the integrity of the
state lottery. In addition to the requirements of
the provisions of chapter 12 of the general
statutes and notwithstanding the provisions of
section 12-806 of the general statutes, the
Connecticut Lottery Corporation shall, prior to
implementing any procedure designed to assure the
integrity of the state lottery, obtain the written
approval of the executive director of the Division
of Special Revenue in accordance with regulations
adopted under section 12-568a of the general
statutes, as amended by section 8 of this act.
Sec. 4. (NEW) No person shall be employed by
the Connecticut Lottery Corporation until such
person has obtained an occupational license issued
by the executive director of the Division of
Special Revenue in accordance with regulations
adopted under section 12-568a of the general
statutes, as amended by section 8 of this act.
Sec. 5. (NEW) The executive director of the
Division of Special Revenue may issue occupational
licenses to employees of the Connecticut Lottery
Corporation. In determining whether to grant a
license to any such employee, the executive
director may require the applicant to submit
information as to such applicant's: (1) Financial
standing and credit which shall, at the discretion
of the executive director, be updated annually;
(2) moral character; (3) criminal record, if any;
(4) previous employment; (5) corporate,
partnership or association affiliations; (6)
ownership of personal assets; and (7) such other
information as the executive director deems
pertinent to the issuance of such license,
provided the submission of such other information
will assure the integrity of the state lottery.
The executive director may reject for good cause
an application for a license and he may suspend or
revoke for good cause any license issued by him
after a hearing held in accordance with the
provisions of chapter 54 of the general statutes.
Except as otherwise provided in this section, such
occupational license shall remain in effect and
not be subject to renewal throughout the term of
employment of any such employee holding such a
license. Any employee of the Connecticut Lottery
Corporation whose license is suspended or revoked,
or any such applicant aggrieved by the action of
the executive director concerning an application
for a license, may appeal to the Gaming Policy
Board not later than fifteen days after such
decision.
Sec. 6. (NEW) No person or business
organization awarded the primary contract by the
Connecticut Lottery Corporation to provide
facilities, components, goods or services which
are necessary for the operation of the activities
of said corporation may do so unless such person
or business organization submits to and
successfully completes a state police background
investigation or is issued a vendor license by the
executive director of the Division of Special
Revenue.
Sec. 7. Section 12-557e of the general
statutes is repealed and the following is
substituted in lieu thereof:
The Gaming Policy Board shall work in
cooperation with the Division of Special Revenue
to implement and administer the provisions of this
chapter and chapter 226b. In carrying out its
duties the board shall be responsible for: (1)
Approving, suspending or revoking licenses issued
under subsection (a) of section 12-574, AS AMENDED
BY SECTION 9 OF THIS ACT; (2) approving contracts
for facilities, goods, components or services
necessary to carry out the provisions of section
12-572; (3) setting racing and jai alai meeting
dates, except that the board may delegate to the
executive director the authority for setting
make-up performance dates within the period of a
meeting set by the board; (4) imposing fines on
licensees under subsection (j) of SAID section
12-574; (5) approving the types of pari-mutuel
betting to be permitted; (6) advising the
executive director concerning the conduct of
off-track betting facilities; (7) assisting the
executive director in developing regulations to
carry out the provisions of this chapter, [and]
chapter 226b [,] AND SECTION 12-568a, AS AMENDED
BY SECTION 8 OF THIS ACT, and approving such
regulations prior to their adoption; (8) hearing
all appeals taken under subsection (j) of SAID
section 12-574 AND SECTION 5 OF THIS ACT; and (9)
advising the Governor on state-wide plans and
goals for legalized gambling.
Sec. 8. Section 12-568a of the general
statutes is repealed and the following is
substituted in lieu thereof:
The Division of Special Revenue shall adopt
regulations, in accordance with chapter 54, FOR
THE PURPOSE OF ASSURING THE INTEGRITY OF THE STATE
LOTTERY, concerning the regulation of the state
lottery under the operation and management of the
Connecticut Lottery Corporation. Such regulations
[may include but need not be limited to] SHALL
INCLUDE: (1) THE LICENSING OF EMPLOYEES OF THE
CONNECTICUT LOTTERY CORPORATION AND ANY PERSON OR
BUSINESS ORGANIZATION AWARDED THE PRIMARY CONTRACT
BY SAID CORPORATION TO PROVIDE FACILITIES,
COMPONENTS, GOODS OR SERVICES WHICH ARE NECESSARY
FOR THE OPERATION OF THE ACTIVITIES AUTHORIZED BY
CHAPTER 229a; (2) THE APPROVAL OF PROCEDURES OF
THE CORPORATION; (3) THE TIME PERIOD FOR COMPLYING
WITH THE REGULATIONS GOVERNING SAID APPROVAL OF
PROCEDURES; (4) offerings of lottery games; [,]
(5) minimum prize payouts and payments; [,] (6)
regulation of lottery sales agents including
qualifications for licensure and license
suspension and revocation; [, lottery sales
including categories of sales and limitations on
sales,] (7) assurance of the integrity of the
state lottery including the computer gaming
system, computer internal control and system
testing; [,] and (8) limitations on advertising
and marketing content to assure public information
as to the odds of winning the lottery and the
prohibition of sales of tickets to minors.
Sec. 9. Subsection (d) of section 12-574 of
the general statutes is repealed and the following
is substituted in lieu thereof:
(d) No person or business organization awarded
the primary contract by [the Connecticut Lottery
Corporation or by] an association licensee to
provide facilities, components, goods or services
which are necessary for the operation of the
activities authorized by the provisions of section
12-572 [or chapter 229a,] may do so unless such
person or business organization is licensed as a
vendor licensee by the executive director.
Sec. 10. Subsection (b) of section 12-571a of
the general statutes is repealed and the following
is substituted in lieu thereof:
(b) The eighteen off-track betting branch
facilities authorized by subsection (a) of this
section may include [four] EIGHT facilities which
have screens for the simulcasting of off-track
betting race programs or jai alai games and other
amenities including, but not limited to,
restaurants and concessions, provided, on and
after June 19, 1992, FOUR OF such facilities shall
be located in the town and city of New Haven, the
town of Windsor Locks, within the dog race track
in the town of Plainfield and within the fronton
or dog race track in the town and city of
Bridgeport. [, provided no such facility equipped
with screens for simulcasting shall be within
thirty-five miles of the location of the
teletheater in the town of Windsor Locks]
AUTHORITY TO SIMULCAST DOES NOT INCLUDE ANY BRANCH
FACILITY LOCATED WITHIN A ZONE OF PROTECTION
NEGOTIATED BETWEEN THE OPERATOR OF THE OFF-TRACK
BETTING SYSTEM AND ANY OTHER PARI-MUTUEL BETTING
FACILITY. Each such facility located within a
fronton or a dog race track shall be operated by
the [state or by a] licensee authorized to operate
the off-track betting system in conjunction with
the licensee of such fronton or dog race track and
all such facilities within a fronton or a dog race
track shall be operated in substantially the same
manner. The location of each such facility shall
be approved by the executive director with the
consent of the Gaming Policy Board and shall be
subject to the prior approval of the legislative
body of the town in which such facility is
proposed to be located. The division shall report
annually to the joint standing committee of the
General Assembly having cognizance of matters
relating to legalized gambling on the status of
the establishment or improvement of the off-track
betting branch facility pursuant to this
subsection.
Sec. 11. Subsection (d) of section 12-572 of
the general statutes is repealed and the following
is substituted in lieu thereof:
(d) (1) If the multiple forms of wagering
known as daily double, exacta and quinella are
permitted by the board, the division or any person
or business organization operating the off-track
betting system shall distribute all sums deposited
in the pari-mutuel pool for any such event to the
holders of winning tickets therein, less nineteen
per cent of the total deposits in such pool plus
the breakage to the dime.
(2) If multiple forms of wagering on three or
more animals are permitted by the board, the
division or such person or business organization
operating an off-track betting system, [may] SHALL
retain [up to twenty-five] TWENTY-THREE per cent
of the total sums deposited in the pool for such
event, plus the breakage to the dime. [, the exact
percentage to be established by the board,
provided in no case shall the percentage retained
be less than seventeen per cent.]
Sec. 12. Section 12-575 of the general
statutes is repealed and the following is
substituted in lieu thereof:
(a) The board may permit at racing events,
exhibitions of the game of jai alai licensed under
the provisions of this chapter or at off-track
betting facilities, betting under a pari-mutuel
system, so called, including standard pari-mutuel,
daily double, exacta, quinella, trifecta,
superfecta, twin trifecta, pick four and pick six
betting, and such other forms of multiple betting
as the board may determine.
(b) The pari-mutuel system, so called, shall
not be used or permitted at any location other
than the race track at which the racing event is
licensed to be conducted or the fronton at which
the game of jai alai is licensed to be played or
at an off-track betting facility operated by the
division or by a licensee authorized to operate
the off-track betting system. A computerized
electronic totalizator system, approved by the
executive director, shall be used to conduct
pari-mutuel wagering at each racing or jai alai
event. A computerized electronic totalizator
system approved by the executive director and,
where authorized by subsection (b) of section
12-571a, AS AMENDED BY SECTION 10 OF THIS ACT, and
approved by the executive director, a simulcast
system shall be used to conduct pari-mutuel
wagering and simulcasting of off-track betting
race programs at off-track betting facilities. The
executive director may require any licensee to
submit information concerning the daily operation
of such totalizator or simulcast system which he
deems necessary for the effective administration
of this chapter, including records of all wagering
transactions, in such form and manner as he shall
prescribe.
(c) (1) Except as provided in subdivision (2)
of this subsection, each licensee conducting horse
racing events under the pari-mutuel system shall
distribute all sums deposited in any pari-mutuel
program to the holders of winning tickets therein,
less seventeen per cent of the total deposits plus
the breakage to the dime of the amount so
retained; each licensee conducting jai alai events
shall distribute all sums deposited in any
pari-mutuel program to the holders of winning
tickets therein, less a maximum of [twenty]
EIGHTEEN per cent of the [total] deposits IN THE
WIN, PLACE OR SHOW POOLS AND LESS A MAXIMUM OF
TWENTY-THREE PER CENT OF THE DEPOSITS IN ALL OTHER
POOLS plus the breakage to the dime of the amount
so retained; each licensee conducting dog racing
events shall distribute all sums deposited in any
pari-mutuel program to the holders of winning
tickets therein, less [twenty] A MAXIMUM OF
EIGHTEEN per cent of the [total] deposits IN THE
WIN, PLACE OR SHOW POOLS AND LESS A MAXIMUM OF
TWENTY-THREE PER CENT OF THE DEPOSITS IN ALL OTHER
POOLS plus the breakage to the dime of the amount
so retained, OR, SHALL DISTRIBUTE ALL SUMS
DEPOSITED IN ALL OF ITS PARI-MUTUEL PROGRAMS
CONDUCTED ON ANY DAY TO THE HOLDERS OF WINNING
TICKETS THEREIN LESS TWENTY PER CENT OF THE TOTAL
DEPOSITS PLUS THE BREAKAGE TO THE DIME OF THE
AMOUNT SO RETAINED provided on and after July 1,
1992, each licensee conducting dog racing events
on July 5, 1991, shall allocate four per cent of
all sums deposited in any pari-mutuel program to
purses, one-quarter of one per cent to capital
expenditures for alterations, additions,
replacement changes, improvements or major repairs
to or upon the property owned or leased by any
such licensee and used for such racing events, and
one-quarter of one per cent to promotional
marketing, to reduce the costs of admission,
programs, parking and concessions and to offer
entertainment and giveaways. Each licensee
conducting dog racing events shall, on an annual
basis, submit to the division certified financial
statements verifying the use of such allocations
for purses, capital improvements and promotional
marketing. (2) Each licensee conducting racing or
jai alai events may carry over all or a portion of
the sums deposited in any pari-mutuel program,
less the amount retained as herein provided, in
the twin trifecta, pick four or pick six
pari-mutuel pool to another pool, including a pool
in a succeeding performance.
(d) Each licensee conducting horse racing
events under the pari-mutuel system shall pay to
the state, and there is hereby imposed: (1) A tax
on the total money wagered in the pari-mutuel pool
on each and every day the licensee conducts racing
events, pursuant to the following schedule:
Total Wagered Tax
0 to $100,001 3.25% on the entire pool
$100,001 to $200,001 3.75% on the entire pool
$200,001 to $300,001 4.25% on the entire pool
$300,001 to $400,001 4.75% on the entire pool
$400,001 to $500,001 5.25% on the entire pool
$500,001 to $600,001 5.75% on the entire pool
$600,001 to $700,001 6.25% on the entire pool
$700,001 to $800,001 6.75% on the entire pool
$800,001 to $900,001 7.25% on the entire pool
$900,001 to $1,000,001 7.75% on the entire pool
$1,000,001 and over 8.75% on the entire pool
and (2) a tax equal to one-half of the breakage to
the dime resulting from such wagering. The
executive director, with the advice and consent of
the board, shall by regulation designate the
percentage of the difference between the seventeen
per cent specified in subsection (c), and the tax
specified in this subsection which shall be
allocated as prize or purse money for the horses
racing at each facility.
(e) Each licensee conducting dog racing events
under the pari-mutuel system shall pay to the
state, and there is hereby imposed: (1) (A) A tax
at the rate of two per cent on the total money
wagered in the pari-mutuel pool on each and every
day the licensee conducts racing events or (B) on
or after July 1, 1993, in the case of any licensee
licensed prior to July 5, 1991, (i) a tax at the
rate of two per cent on any amount up to and
including fifty million dollars of the total money
wagered in the pari-mutuel pool in any state
fiscal year during which a licensee licensed prior
to July 5, 1991, conducts racing events, (ii) a
tax at the rate of three per cent on any amount in
excess of fifty million dollars and up to and
including eighty million dollars of the total
money wagered in the pari-mutuel pool in any state
fiscal year during which a licensee licensed prior
to July 5, 1991, conducts racing events and (iii)
a tax at the rate of four per cent on any amount
in excess of eighty million dollars of the total
money wagered in the pari-mutuel pool in any state
fiscal year during which a licensee licensed prior
to July 5, 1991, conducts racing events, and (2) a
tax equal to one-half of the breakage to the dime
resulting from such wagering.
(f) Each licensee operating a fronton at which
the game of jai alai is licensed to be played
under the pari-mutuel system shall pay to the
state and there is hereby imposed: (1) (A) A tax
at the rate of two per cent on any amount up to
and including fifty million dollars of the total
money wagered on such games, (B) a tax at the rate
of three per cent of any amount in excess of fifty
million dollars and up to and including eighty
million dollars of the total money wagered on such
games, and (C) a tax at the rate of four per cent
on any amount in excess of eighty million dollars
of the total money wagered on such games, and (2)
a tax equal to one-half of the breakage to the
dime resulting from such wagering.
(g) The licensee authorized to operate the
system of off-track betting under the pari-mutuel
system shall pay to the state and there is hereby
imposed: (1) A tax at the rate of three and
one-half per cent on the total money wagered in
the pari-mutuel pool on each and every day the
licensee broadcasts racing events and (2) a tax
equal to one-half of the breakage to the dime
resulting from such wagering.
(h) The executive director shall assess and
collect the taxes imposed by this chapter under
such regulations as, with the advice and consent
of the board, he may prescribe. All taxes hereby
imposed shall be due and payable by the close of
the next banking day after each day's racing or
jai alai exhibition. If any such tax is not paid
when due, the executive director shall impose a
delinquency assessment upon the licensee in the
amount of ten per cent of such tax or ten dollars,
whichever amount is greater, plus interest at the
rate of one and one-half per cent of the unpaid
principal of such tax for each month or fraction
of a month from the date such tax is due to the
date of payment. Subject to the provisions of
section 12-3a, the executive director may waive
all or part of the penalties provided under this
subsection when it is proven to his satisfaction
that the failure to pay such tax within the time
required was due to reasonable cause and was not
intentional or due to neglect. Failure to pay any
such delinquent tax upon demand may be considered
by the executive director as cause for revocation
of license.
(i) The executive director shall devise a
system of accounting and shall supervise betting
at such track, fronton or off-track betting
facility in such manner that the rights of the
state are protected and shall collect all fees and
licenses under such regulations as, with the
advice and consent of the board, he shall
prescribe.
(j) The amount of unclaimed moneys, as
determined by the executive director, held by any
licensee other than by licensees authorized to
operate a jai alai fronton, dog race track or the
off-track betting system on account of outstanding
and uncashed winning tickets, shall be due and
payable to the executive director, for deposit in
the General Fund of the state, at the expiration
of one year after the close of the meeting during
which such tickets were issued. If any such
unclaimed moneys are not paid when due, the
executive director shall impose a delinquency
assessment upon the licensee in the amount of ten
per cent of such moneys or ten dollars, whichever
amount is greater, plus interest at the rate of
one and one-half per cent of the unpaid principal
of such moneys for each month or fraction of a
month from the date such moneys are due to the
date of payment. Subject to the provisions of
section 12-3a, the executive director may waive
all or part of the penalties provided under this
subsection when it is proven to his satisfaction
that the failure to pay such moneys to the state
within the time required was due to reasonable
cause and was not intentional or due to neglect.
(k) The executive director may authorize
deputies and the Commissioner of Revenue Services
or his agents are authorized to enter upon the
premises at any racing event, jai alai exhibition
or off-track betting race event for the purpose of
inspecting books and records, supervising and
examining cashiers, ticket sellers, pool sellers
and other persons handling money at said event and
such other supervision as may be necessary for the
maintenance of order at such event.
(l) The executive director shall, on or before
the tenth day of each month, prepare and file with
the Treasurer a full and complete statement of the
division's receipts from all sources and shall
turn over to the Treasurer all moneys in the
division's possession.
(m) (1) The executive director shall pay each
municipality in which a horse race track is
located, one-quarter of one per cent of the total
money wagered on horse racing events at such race
track, except the executive director shall pay
each such municipality having a population in
excess of fifty thousand one per cent of the total
money wagered at such horse racing events in such
municipality. The executive director shall pay
each municipality in which a jai alai fronton or
dog race track is located one-half of one per cent
of the total money wagered on jai alai games or
dog racing events at such fronton or dog race
track, except the executive director shall pay
each such municipality having a population in
excess of fifty thousand one per cent of the total
money wagered on jai alai games or dog racing
events at such fronton or dog race track located
in such municipality. The executive director shall
pay each municipality in which an off-track
betting facility is located one AND THREE-FIFTHS
per cent of the total money wagered in such
facility less amounts paid as refunds or for
cancellations. THE EXECUTIVE DIRECTOR SHALL PAY TO
BOTH THE CITY OF NEW HAVEN AND THE TOWN OF WINDSOR
LOCKS AN ADDITIONAL ONE-HALF OF ONE PER CENT OF
THE TOTAL MONEY WAGERED LESS ANY AMOUNT PAID AS A
REFUND OR A CANCELLATION IN ANY FACILITY EQUIPPED
WITH SCREENS FOR SIMULCASTING AFTER OCTOBER 1,
1997, LOCATED WITHIN A FIFTEEN MILE RADIUS OF
FACILITIES IN NEW HAVEN AND WINDSOR LOCKS. Payment
shall be made not less than four times a year and
not more than twelve times a year as determined by
the executive director, and shall be made from the
tax imposed pursuant to subsection (d) of this
section for horse racing, subsection (e) of this
section for dog racing, subsection (f) of this
section for jai alai games and subsection (g) of
this section for off-track betting. (2) If, for
any calendar year after the surrender of a license
to conduct jai alai events by any person or
business organization pursuant to subsection (c)
of section 12-574c and prior to the opening of any
dog race track by such person or business
organization, any other person or business
organization licensed to conduct jai alai events
is authorized to conduct a number of performances
greater than the number authorized for such
licensee in the previous calendar year, the
executive director shall pay the municipality in
which the jai alai fronton for which such license
was surrendered was located, rather than the
municipality in which the jai alai fronton
conducting the increased performances is located,
one-half of one per cent of the total money
wagered on jai alai games for such increased
performances at the fronton which conducted the
additional performances, except the executive
director shall pay each such municipality having a
population in excess of fifty thousand one per
cent of the total money wagered on jai alai games
for such increased performances at such fronton.
(3) During any state fiscal year ending on or
after June 30, 1993, the executive director shall
pay (A) each municipality in which a dog race
track was operating prior to July 5, 1991,
eight-tenths of one per cent of the total money
wagered on dog racing events at such dog race
track, except the executive director shall pay
each such municipality having a population in
excess of fifty thousand one per cent of the total
money wagered on dog racing events at such dog
race track located in such municipality and (B)
the Northeast Connecticut Economic Alliance, Inc.
two-tenths of one per cent of the total money
wagered on dog racing events at any dog race track
operating prior to July 5, 1991.
Sec. 13. This act shall take effect from its
passage, except that sections 1, 2 and 10 to 12,
inclusive, shall take effect July 1, 1997.
Approved June 26, 1997